Problem 3-8A Preparing closing entries, financial statements, and ratios LO A1, A2, P3, P4 The…

Problem 3-8A Preparing closing entries, financial statements, and ratios LO A1, A2, P3, P4 The…

Problem 3-8A Preparing closing entries, financial statements, and ratios LO A1, A2, P3, P4 The…

Problem 3-8A Preparing closing entries, financial statements, and ratios LO A1, A2, P3, P4

The adjusted trial balance for Tybalt Construction as of December 31, 2015, follows.

TYBALT CONSTRUCTION
Adjusted Trial Balance
December 31, 2015
No. Account Title Debit Credit
101 Cash $ 9,000
104 Short-term investments 31,000
126 Supplies 8,900
128 Prepaid insurance 7,800
167 Equipment 48,000
168 Accumulated depreciation—Equipment $ 24,000
173 Building 190,000
174 Accumulated depreciation—Building 58,000
183 Land 63,000
201 Accounts payable 33,700
203 Interest payable 3,300
208 Rent payable 4,300
210 Wages payable 3,300
213 Property taxes payable 1,700
233 Unearned professional fees 8,300
251 Long-term notes payable 75,000
307 Common stock 7,000
318 Retained earnings 141,400
319 Dividends 17,000
401 Professional fees earned 113,000
406 Rent earned 26,000
407 Dividends earned 2,800
409 Interest earned 2,900
606 Depreciation expense—Building 15,000
612 Depreciation expense—Equipment 10,000
623 Wages expense 36,000
633 Interest expense 5,900
637 Insurance expense 10,800
640 Rent expense 14,200
652 Supplies expense 8,200
682
Postage expense 5,000
683 Property taxes expense 5,800
684 Repairs expense 9,700
688 Telephone expense 4,000
690 Utilities expense 5,400


Totals $ 504,700 $ 504,700





The December 31, 2014, credit balance of Retained Earnings account was $141,400. Tybalt Construction is required to make a $11,000 payment on its long-term notes payable during 2016.
Required:
1.1

Prepare the income statement for the calendar year 2015.

1.2

Prepare the statement of retained earnings for the calendar year 2015.

1.3

Prepare the classified balance sheet at December 31, 2015.

2. Prepare the necessary closing entries at December 31, 2015.
Closing entries (all dated December 31, 2015):

3.

Use the information in the financial statements to compute the following ratios:


Problem 3-8A Preparing closing entries, financial statements, and ratios LO A1, A2, P3, P4 The…

Problem 3-8A Preparing closing entries, financial statements, and ratios LO A1, A2, P3, P4

The adjusted trial balance for Tybalt Construction as of December 31, 2015, follows.

TYBALT CONSTRUCTION
Adjusted Trial Balance
December 31, 2015
No. Account Title Debit Credit
101 Cash $ 9,000
104 Short-term investments 31,000
126 Supplies 8,900
128 Prepaid insurance 7,800
167 Equipment 48,000
168 Accumulated depreciation—Equipment $ 24,000
173 Building 190,000
174 Accumulated depreciation—Building 58,000
183 Land 63,000
201 Accounts payable 33,700
203 Interest payable 3,300
208 Rent payable 4,300
210 Wages payable 3,300
213 Property taxes payable 1,700
233 Unearned professional fees 8,300
251 Long-term notes payable 75,000
307 Common stock 7,000
318 Retained earnings 141,400
319 Dividends 17,000
401 Professional fees earned 113,000
406 Rent earned 26,000
407 Dividends earned 2,800
409 Interest earned 2,900
606 Depreciation expense—Building 15,000
612 Depreciation expense—Equipment 10,000
623 Wages expense 36,000
633 Interest expense 5,900
637 Insurance expense 10,800
640 Rent expense 14,200
652 Supplies expense 8,200
682
Postage expense 5,000
683 Property taxes expense 5,800
684 Repairs expense 9,700
688 Telephone expense 4,000
690 Utilities expense 5,400


Totals $ 504,700 $ 504,700





The December 31, 2014, credit balance of Retained Earnings account was $141,400. Tybalt Construction is required to make a $11,000 payment on its long-term notes payable during 2016.
Required:
1.1

Prepare the income statement for the calendar year 2015.

1.2

Prepare the statement of retained earnings for the calendar year 2015.

1.3

Prepare the classified balance sheet at December 31, 2015.

2. Prepare the necessary closing entries at December 31, 2015.
Closing entries (all dated December 31, 2015):

3.

Use the information in the financial statements to compute the following ratios: